Excerpts from San Francisco Chronicle/Carolyn Lochhead, 2/12/12, "Mortgage crisis losses - who pays?
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....Mark Goldman, a loan officer and real estate lecturer at San Diego State University, said the median price of bank-owned property in California is about half the price of non-foreclosure sales. "When a bank takes a property back, if you're the next-door neighbor the value of your house is probably going to drop 50 percent," Goldman said.* "Is it good to pay off somebody's mortgage?" Goldman added. "That's a very unpopular notion. But is it good to put out the fire at a neighbor's house so your house doesn't burn down?"...
....Who bears the loss depends on who ends up holding the bag. "If the homeowner continues to make their mortgage, in effect they're eating it," Jaffee said. "If they default and hand the house back to the bank, it's the bank that eats it, or the investors who purchased the mortgage-backed securities. It's not a mystery." Read the full article.
* Note: ".. you're the next-door neighbor the value of your house is probably going to drop 50 percent" comment by Mark Goldman does not sound correct to me for our region.
Posted by Kathy Meeh
27 comments:
I read the private sector will take a huge hit for this. PIMCO Investments said pension accounts will take a GIGANTIC LOSS to bail out homeowners. In the end everyone is screwed. Thanks to the lawmakers who decided to de-regulate mortgages and force banks to lend to low income lenders. Pres Obama was a community organizer ( rabble rouser ) who threatened and harassed Citibank to loan to the poor. Any other story is a lie and propaganda. By 2020 America will be suffering terribly. God Help Us All.
Maybe God wants us to help ourselves with our financial problems while he's busy with those in real need.
What if there is no god? Same conclusion.
Not neccessarily.
I know there are those of you who will dispute this , but I am compelled to spread this information. You need to know.
Watch You Tube Video. Pacifica is mentioned.
http://www.youtube.com/watch?feature=player_embedded&v=BlXhkhU0ix0#!
God was a rabble-rouser. Indeed, he has inspired many of the best.
Anon (133) your PIMCO mutual funds are probably doing pretty good right now. The stock market has never been higher (which doesn't mean your stocks and bonds are higher). If you're at the "God help us all" stage, maybe you need to pull your money and put it into to poor 'ol "Citibank". Based upon your fear, you can't afford to take the risk.
BTW President ("rabble-rouser") Obama's administration for 3 years has been cleaning-up the mess that Citibank, other financial institutions and the SEC made. All these institutions have Financial Analysts and Registered Principal oversight on staff, so for years they all knew what was happening and looked the other way.
Anon (432), 13 minutes of a far-right-wing/Glen Beck conspiracy video was 12:59 minutes too long for me. Did George Soros take over the world? Hope so.
BTW, the national non-profit Pacifica news network is not the same as a reference to Pacifica, the city in California.
No, Kathy - the stock market has been higher. The Dow reached 14,198 in October 2007. The Nasdaq was at 5048 in March of 2000.
I stand corrected, Dow and Nasdaq has reached highest level since the great recession (2008). I chose this article source just for you George Impostor (636). Huffington Post/Business, 2/3/12.
What do you do for a living, Kathy?
Anon (842), short answer: Health insurance agent and securities branch office, certified financial planner.
Note: ".. you're the next-door neighbor the value of your house is probably going to drop 50 percent" comment by Mark Goldman does not sound correct to me for our region.
Too many high paying jobs from SF to Silicon Valley for this to happen.
The East Bay, Sacramento, and the Central Valley got hit much harder. Reno and Vegas.
The other way to look at it. Now is the time to buy. CD's are paying under 2%.
Pacifica housing prices have dropped substantially since the peak. You can getv Linda Mar Ranchers for $450, the were going for 600K.
who will get the break, and who will foot the bill?
american people do not know what the obligation will be.
fannie and freddie are exempt.
private lenders are not.
fannie and freddi are complicit in creating the mortgage crisis.
who gets to decide who gets a write down on their mortgage and who doesn't? If you are friends of the administration you will get a waiver, if you are not? you are screwed.
So if you have a good income and are underwater you don't get help.
If you are out of work or don't make enough, and are a registered democrat or union employee you will get help.
The federal government will pass the cost of this on to the citizens. In the end everybody is screwed.
Blind ideological Anonymous @ 10:42AM, you said: "fannie and freddi are complicit in creating the mortgage crisis." Yep, happened 8 years under the George Bush II administration, republicans were in control of congress 6 years.
You also said: "If you are out of work or don't make enough, and are a registered democrat or union employee you will get help." Great! Extreme right-wing registered republicans don't want help or government, and might not figure-out how to fill-out the forms. This probably works-out swell for your inhumane, small government program.
if you have the income why can't you get help? people are not qualified if they have the income , even though they need a loan. Does not make sense to me.
Fannie and Freddie Director was a big time Clinton Democrat.
Bush Administration warned fannie and freddie over and over and over again and again about the implications of their policies and the Bush Administration was made fun of and laughed at. You Tube Videos show this and prove it. You are just to stupid and brainwashed to do your own research.
This administration likes to pick and choose who gets help. They forced the republican owned car dealerships shut down. These lawsuits are still pending and well documented.
"You Tube Videos show this and prove it." (Anonymous, 12:49PM)
Where's the "education by you tube"?
Most people who have no money cannot get a loan from the bank, but there is no political party affiliation box to check. Equal opportunity.
"They forced the republican owned car dealerships shut down." Really, which one? Crook or bankrupt?
Strange things are afoot. Yesterday, CME crude oil markets had an odd technical glitch that took them off line for 75 min., the Bank of Japan "printed" a large quantity of money, major countries of Europe were downgraded, & retail sales severely missed the mark in the U.S. just like right before the 2008 crash.
I've posted below a series of articles on all the above. I want everyone to know what's happening. Something BIG is NOT right. Share it with everyone.
Know the truth so you can account for it.
New World Order Alert.
White House Advisor Pushing Global Tax On All Americans.
Watch Video Here:
http://patriotupdate.com/18480/white-house-economic-adviser-we-need-a-global-minimum-tax
Franklin Raines is an Obama financial advisor who took $90 million in
bonuses while running F-mae and F-mac straight in to the ground. He was
also directly involved in causing the subprime financial crisis. This scum
bag basically "cooked the books" to put more money in his own pockets and in
the pockets of his "pals". However, for some strange reason, Obama and the
Democrats don't seem to be a bit outraged by Raines "performance" bonuses.
If the housing market had crashed during the Clinton Administration, or even at the start of the Bush Administration, Clinton policies could have been blamed.
In fact, the housing market crashed near the end of the Bush Administration, whose economic policy was - anything goes, we don't need no stinkin' regulation.
If Bush didn't like the people Clinton had running government agencies, Bush had plenty of time to replace them.
Bush supporters ought to man-up and admit their part in the mortgage crisis.
"Franklin Raines is an Obama financial advisor.."
FALSE rumor-mongering as usual, Anon (815). Franklin Raines and Tim Howard resigned from Fannie Mae in 2004. Neither he nor Howard were "financial advisors", or Chief Financial Advisors, or anything else for or connected with the Obama administration.
Apparently the Obama campaign made a couple of phone calls to Franklin Raines inquiring about "general housing and economy issues." And from that, the FALSE rumor came from a McCain campaign "hit piece" commercial. See Snopes: FALSE rumor, origins (scroll down).
"New World Order Alert."
You've got the message wrong, (Anon 810). The White House National Economic Council Director, Gene Sperling, was talking about USA TAX REFORM.
And, if you're against Tax Reform which requires big corporations and very wealthy individuals to pay their "fair share", maybe ask yourself why you are against the best interest of the people of the USA?
Steve, doesn't Kathy do a good enough job stirring up the tinfoil hat crowd already?
Anon (334), how much continual, inserted misinformation do you think we should all be subjected on an ongoing basis?
Your tolerance level for baseless statements presented as absolutes is obviously high.
Thanks Ma!
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